In a tense economic context marked by the proliferation of business failures, Coface is performing well thanks to a strategy combining innovation and data enhancement.
Can Big Data revolutionize the credit insurance industry?
According to Coface's success story, which shows strong results despite a complicated economic environment, it is certainly reinventing trade credit risk management. By leveraging data early on, the group, which supports 100,000 clients across 200 markets, can now boast a competitive edge over its rivals.
Integrating data into our activities has proven extremely beneficial.
"It not only strengthened our expertise in credit insurance and debt collection but also allows us to offer our clients essential strategic data for managing their activities.", confirms Xavier Durand, CEO.
Data: the new Gold for businesses
In recent years, data has become a strategic asset for navigating an increasingly complex economic environment. According to the latest Coface Data Barometer, 80% of executives acknowledge its importance, although 70% believe they lack suitable solutions to use it effectively.
At a time when unpaid bills are the leading cause of business failure, it's essential to know the financial strength of your customers and suppliers.
"However, globally, this data is highly heterogeneous: easily accessible and free in Germany, difficult to find in the U.S., and nearly nonexistent in emerging countries. That's why we develop solutions offering reliable and homogeneous information about businesses worldwide." explains Xavier Durand.
To achieve this, Coface's information services employ 600 people across 52 countries, managing a database of 220 million companies. These specialists collect, refine, and structure financial data to provide clients with key indicators and predictive scores on companies' financial health. Early in February, the group took another step by acquiring Cedar Rose, a specialist in financial information for the Middle East and Africa. In a region experiencing rapid growth, where access to data remains a challenge, this partnership further strengthens Coface's position in the global business information market.
Promising innovation dynamics
In parallel, Coface is heavily investing in intuitive and high-performance digital tools that simplify decision-making and optimize financial risk monitoring. Launched in June 2023, the digital platform Alyx offers policyholders a centralized tool for managing commercial credit risks, allowing them to automate key tasks and integrate accounting data. "In just a few years, data has profoundly transformed our business," concludes Xavier Durand.
"Beyond generating €70 million in incremental revenue for the group, it primarily enables us to approach the future with confidence, thanks to an adapted and differentiated offering."
